HONG KONG SAR - Media OutReach - 21 June 2023 - HONMA Golf Limited ("HONMA"; together with its subsidiaries, the "Group"; HKEx stock code: 6858), one of the most prestigious golf brands worldwide, announced today its consolidated results for the year ended 31 March 2023 (the "Period"). Financial Highlights During the Period and despite multiple unexpected challenges, HONMA's financial performance remained resilient. Fueled by the "single brand, multi-categories, Asia-focused" growth strategy, HONMA achieved solid growth in key markets outside China while maintaining a strong and healthy cash flow.

• Revenue increased by 1.8% year-on-year to JPY29,495.0 million (equivalent to USD218.8 million), in spite of extended interruptions to the Group's retail operations in China as a result of various home shelter and other COVID related measures during the Period.
• Markets outside China recorded continued and steady year-on-year sales growth. Sales from Japan and South Korea rose by 15.6% and 3.8% respectively.
• Gross profit margin and EBITDA margin remained solid and finished at 50.8% and 20.3% respectively.
• Net operating cash flow stood at JPY3,675.9 million (equivalent to USD27.3 million) for the year ended 31 March 2023. Net cash position stood at JPY6,794.8 million (equivalent to USD51.1 million), representing a 0.6% year-on-year increase.
• The Board proposed a final dividend of JPY1.5 per share, together with the interim dividend of JPY1.5 per share, total dividends for the financial year will amount to JPY3.0 per share. Total dividend payout will amount to JPY1,817.0 million, representing 55.8% of the Group's distributable profits for the period.

Major markets in Asia demonstrated resilient sales momentum; reprioritizing HONMA's growth strategies in North America and Europe while improving both markets' financial standing Despite continued economic and political uncertainties, sharp and continuing devaluation of the Japanese yen, extended disruption to the retail business in China, and the weak consumption sentiments materially affecting the business performance, most of the markets demonstrated resilient and upward sales momentum during the Period. Geographically, revenue from Japan grew by 15.6%, on the back of a complete sales recovery in all channels and product categories. Korea continued its upward trajectory and delivered a year-on-year revenue growth of 3.8% thanks to the continued uptake in golf participation and successful launch of new products since early 2022. Revenue from China and North America recorded a year-on-year growth of 2.0% and 3.2%, respectively. Japan, Korea and China contributed 83.8% of the Group's total revenue. During the Period, the Group reprioritised its distribution strategy in North America and Europe by focusing on a smaller but premier group of accounts that are most capable to represent HONMA's tradition and pursuit of the super-premium and premium-performance consumer segments. As a result, the Group's number of POS in Europe dropped by 580 to a total of 35, and the sales from Europe provisionally decreased by 68.2% during the Period. Focusing on club products that best represent Japanese craftsmanship and world standard innovative technology in pursuit of players in the super-premium and premium-performance segments. HONMA continues to derive most of its revenue from the sales and distribution of golf clubs. For the year ended 31 March 2023, sales from golf clubs generated 72.9% of the Group's total revenue and amounted to JPY21,512.9 million. HONMA remains committed to applying cutting-edge technologies and artisan-style Japanese craftsmanship to the design, development and manufacturing of a comprehensive range of exquisitely crafted and performance-driven golf clubs. Following the launch of Beres Aizu and TW757, the Group continued penetrating into the super-premium and premium performance consumer segments and saw golf club sales grew by 3.2% during the year ended 31 March 2023. As part of its efforts towards the premium performance segments, the Group launched a number of club series targeting consumers in its main markets and consequently revenue from country specific models grew by 18.3% as compared to the year ended 31 March 2022. Accelerating growth in the golf ball business in Japan and further nurturing the apparel business to create a golf lifestyle company for golfers in the super-premium and premium-performance segments. Sales from apparel and golf balls accounted for 10.2% and 10.0% of the Group's total revenue. Total golf ball sales came down slightly by 1.1% to JPY2,942.3 million during the year ended 31 March 2023, reflecting continued raw material shortage challenges. Nevertheless, sales of golf balls from Japan recorded a solid year-on-year growth of 15.8%, representing a rocketed CAGR of 36.9% since FY2017. Such results was achieved through the Group's further prioritising of its product development resources and...